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Cyclical Industries’ Stock Performance Reaction during COVID-19: A Systematic Literature Review

Author

Listed:
  • Ishak, Norhamiza

    (Faculty of International Finance Universiti Malaysia Sabah Labuan International Campus 87000 Federal Territory of Labuan MALAYSIA.)

  • Kadir @ Shahar, Hanita

    (School of Economics, Finance and Banking Universiti Utara Malaysia 06010 UUM Sintok, Kedah MALAYSIA.)

  • Jiun, Ricky Chia Chee

    (Faculty of International Finance Universiti Malaysia Sabah Labuan International Campus 87000 Federal Territory of Labuan MALAYSIA.)

Abstract

This study explores the impact of COVID-19 on stock market reactions of cyclical and non-cyclical industries during the pandemic. This paper aims to provide a systematic literature review (SLR) of studies done on the effect of COVID-19 on stock price. The PRISMA Statement (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) guided this study through an SLR within the month of October 2020. Under the PRISMA, the study was scrutinized through three process: 1) defining clear research questions that permit a systematic research, 2) identifying the inclusion and exclusion criteria, and 3) examining large databases of scientific literature in a defined time. A total of 18 out of 56 papers were identified and analysed to give better understanding of the pandemic’s effect on industry companies and the methodologies adopted in past studies. This paper analyses the major theme, namely cyclical industries impacted by COVID-19. The industries experiencing such value destructions include tourism, airlines, restaurants and transportation. The findings of this review are expected to have implications on investors, academicians and the public at large, particularly with regards to how unprecedented events such as COVID-19 can inflict economic damage.

Suggested Citation

  • Ishak, Norhamiza & Kadir @ Shahar, Hanita & Jiun, Ricky Chia Chee, 2021. "Cyclical Industries’ Stock Performance Reaction during COVID-19: A Systematic Literature Review," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 55(1), pages 147-158.
    • Handle: RePEc:ukm:jlekon:v:55:y:2021:i:1:p:147-158
    DOI: http://dx.doi.org/10.17576/JEM-2021-5501-11
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    References listed on IDEAS

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    More about this item

    Keywords

    Covid-19; Systematic review; industries; stock price;
    All these keywords.

    JEL classification:

    • G - Financial Economics
    • G0 - Financial Economics - - General
    • G1 - Financial Economics - - General Financial Markets
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G3 - Financial Economics - - Corporate Finance and Governance
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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